BSEC plans to speed up IPO approvals and attract more large companies to expand Bangladesh’s stock market capitalisation

The Bangladesh Securities and Exchange Commission (BSEC) is planning to accelerate initial public offerings (IPOs), attract institutional investors and encourage more large companies to list on the stock market, its Chairman Masud Khan said on Saturday.

Speaking at the IDLC Capital Market Conclave at a city hotel, Khan noted that retail investors account for nearly 90 per cent of market participants in Bangladesh, underscoring the need to increase institutional participation.

He said the commission was working to bring pension funds, gratuity funds and life insurance companies into the capital market. Efforts are also underway to expand open-ended mutual funds and simplify their distribution mechanisms.

Khan said the regulator was reforming the IPO approval process, which has traditionally taken between 18 and 24 months. The planned changes include strengthening accountability for statutory auditors, simplifying valuation requirements and introducing a Dutch auction mechanism for public offerings.

The BSEC has increased the eligibility threshold for direct listings from Tk 5 billion to Tk 10 billion in annual turnover or total asset value. It has also approved around Tk 3.5 billion in high-grade asset-backed corporate bonds and instructed that corporate bonds be traded on the main board.

Other initiatives include reviving Central Counterparty Bangladesh Limited, introducing artificial intelligence-powered market surveillance and developing regulations for derivatives trading and regulated short selling.

Khan said net foreign purchases reached Tk 700 billion in September, stressing that Bangladesh must expand its market capitalisation and attract more major companies to the bourse to strengthen its position in international market indices.

He called on large domestic businesses and multinational corporations to list voluntarily, warning that securities laws empower the commission to compel certain companies to enter the stock market.